State Ex Rel. Oklahoma Bar Ass'n v. Kessler

1991 OK 81, 818 P.2d 463, 62 O.B.A.J. 2417, 1991 Okla. LEXIS 92, 1991 WL 138536
CourtSupreme Court of Oklahoma
DecidedJuly 30, 1991
DocketOBAD No. 984, SCBD No. 3692
StatusPublished
Cited by21 cases

This text of 1991 OK 81 (State Ex Rel. Oklahoma Bar Ass'n v. Kessler) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Oklahoma Bar Ass'n v. Kessler, 1991 OK 81, 818 P.2d 463, 62 O.B.A.J. 2417, 1991 Okla. LEXIS 92, 1991 WL 138536 (Okla. 1991).

Opinions

KAUGER, Justice.

The complainant, Oklahoma Bar Association (Bar Association), alleges that the respondent, Paul J. Kessler (Kessler) commingled client funds and used the money for purposes other than those authorized by the client. The Bar Association also alleges that Kessler misrepresented to the trial court in a writ of assistance proceeding that the money had been used for its intended purpose. However, the trial panel made no findings of fact concerning the misrepresentation to the trial court. We find that the Bar Association established by clear and convincing evidence that Kes-sler commingled and misused client funds, and that the same evidence supports a finding that he misrepresented the disposition of the client’s funds to the trial court. The two-year and one day suspension with the imposition of costs in the sum of $1,790.62 is warranted.

FACTS

Kessler is a duly licensed attorney and a member of the Oklahoma Bar Association. Kessler represented a client in a foreclosure proceeding initiated by Citizens Bank of Edmond. During the foreclosure, the client negotiated with a vice-president of the bank to lease back the home on which the bank was foreclosing for $800 a month. The client approached Kessler and Kessler agreed to formalize the lease. Both parties testified that the delivery of the check was separate from the foreclosure action. Kessler was simply to check on the agreement being drafted by the bank to determine the commencement of the rental period and to deliver the check. All negotiations were done by the client and the bank. On February 7, 1989, Kessler wrote to the attorney representing the bank asking him to confirm the lease agreement and to notify Kessler concerning the commencement of the rental period.

On May 6, 1989, the client gave Kessler $800 in cash. A receipt was issued by Kessler’s secretary. At the bottom of the receipt, she noted that the money was for the June 1989 rent to Citizens Bank. Kes-sler testified that the money was not deposited into an attorney trust account, but that it was placed in a locked box maintained in Kessler’s office.

On June 6, 1989, Kessler sent a letter to the vice-president of the bank enclosing a copy of a letter allegedly sent on May 30, 1989. The May 30th letter purported to transmit check No. 732, dated May 30, 1989, in the amount of $800 drawn on Kes-sler’s personal account. Two officers at the bank testified that when they received the letter dated June 6, they made a diligent search for the May 30th letter and the check — they were never found.

In June, the bank filed a Writ of Assistance in the foreclosure action for the client’s removal from the property. Late in [465]*465June, Kessler filed an objection to the Writ stating: that a vice-president of the bank had agreed the property would be leased to the client for $800 per month; that Kessler had paid the bank; and that the bank had not returned the money. The client was removed from the property.

Kessler alleges that after the Writ of Assistance was issued, the bank returned his original letter dated May 30, 1989 and the check in a bank envelope without a cover letter to him. Kessler contends that he then tore up the original letter and check. The vice-president of the bank testified that the letter and check were not found but had they been found he would not have returned the original letter to Kessler. Instead, he would have written his own letter referencing the May 30th letter. Kessler maintains that the vice-president’s job was in jeopardy because he had bound the bank to a lease agreement which he no longer had the authority to negotiate.

In July, Kessler wrote the client and informed him that he had credited the $800 against outstanding statements owed, and he returned $500 to the client. The testimony is disputed concerning why the $500 was returned to the client. Kessler contends that the client came in after the July letter and stated that he needed the money for payroll and Kessler agreed to write the check. The client contends that it was for a $500 cash bond which was forfeited when Kessler failed to appear for the client in a DUI proceeding. In August, Kessler wrote the client and informed him that because he hadn’t paid his attorney fees for past representation, Kessler would no longer represent him. Kessler told the client that he could pick up his file.

Kessler’s personal bank statements were introduced into evidence. His checks were in the form of individual checkbooks. Kes-sler testified that he used different groups of checks because he kept some of the checkbooks at the office, some at his home, one or two in his car, and one in his billfold. The checkbooks contained 25 checks which were numbered sequentially. Check numbers 727, 728, 729, 730 and 731 were all written in chronological order and issued in July, 1989, five weeks after Kessler claimed he wrote check number 732 for the client’s rent.

The Bar Association advised Kessler of the complaint on December 14, 1989. No response was received. On December 29, 1989, a second letter was sent to Kessler by certified mail. On January 26, 1990, Kessler filed his response. In that letter, Kessler referenced correspondence allegedly sent on January 18, 1990. The Bar Association has no record of receiving the letter. Kessler included in his correspondence a copy of the January 18th letter. Kessler maintained as he has throughout this proceeding that he mailed the Bank a check for $800.00, and that when the check was returned, he applied the check towards the client’s outstanding bill.

The hearing for this matter was held on December 4, 1990, and the parties were allowed to file closing arguments with the panel. The Bar Association’s closing argument was to be filed on January 4, 1991, Kessler’s was to be filed on January 24, 1991, and the Bar’s reply by January 29, 1991. The Bar Association filed its closing argument on January 8, 1991, and twenty days later Kessler filed his closing argument on January 28, 1991. No reply brief was filed. The Trial Panel’s Report was filed on April 22, 1991, almost ninety days after closing arguments were filed. On June 4, 1991, Kessler filed a motion to dismiss for failure to comply with 5 O.S.1981 Ch. 1, App. 1-A, Rule 6.13.1 The initial objection filed by the Bar Association stated that an extension had been requested. However, when a diligent search failed to turn up the request for an extension, the Bar Association filed a Corrected Objection to the Motion on July 2, 1991. It stated that an extension had not been requested, and that the assertion that an extension [466]*466had been requested was a typographical error.

I

THE MOTION TO DISMISS IS DENIED.

Kessler asserts that this matter should be dismissed because the Trial Panel failed to file its report within thirty days as required by Rule 6.13. The Trial Panel filed its report eighty days after the hearing had concluded. No extension was requested. This issue was decided in State ex rel. Oklahoma Bar Assoc. v. Bradley, 746 P.2d 1130, 1133 (Okla.1987), in which we held that although we do not condone such a delay, such delay in and of itself does not divest this Court of jurisdiction. Here, as in Bradley, we disapprove of the delay in filing the report. However, because we do not find that Kessler was prejudiced by this delay, the motion to dismiss is denied.

II

THE BAR ASSOCIATION ESTABLISHED BY CLEAR AND CONVINCING EVIDENCE THAT KESSLER COMMINGLED MISUSED CLIENT FUNDS.

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Bluebook (online)
1991 OK 81, 818 P.2d 463, 62 O.B.A.J. 2417, 1991 Okla. LEXIS 92, 1991 WL 138536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-oklahoma-bar-assn-v-kessler-okla-1991.